Private equity investments in Indian real estate rose 23 per cent year on year to $2.7 bn in the first half of FY27, according to Anarock. The period was the strongest first half since H1 FY23, with inflows already reaching 63 per cent of the $4.3 bn invested during the whole of FY26. The market recorded 30 transactions, compared with 22 a year earlier, while average deal size increased 18 per cent to $91 mn.

Domestic investors deployed about $1.3 bn across 24 deals, nearly six times the $220 mn invested in H1 FY26, and accounted for 48 per cent of total inflows. Their share had been 16 per cent in FY25. Foreign investors invested about $1.4 bn across six deals, a 19 per cent year-on-year increase, with average deal size of about $238 mn compared with $54 mn for domestic investors.

Offices attracted the largest share of investment at 35 per cent, as investors continued to favour completed and leased Grade A assets. Data centres recorded the sharpest increase, accounting for 29 per cent of inflows compared with 4 per cent in FY26, driven by large foreign platform investments. Hospitality accounted for 12 per cent, residential for 14 per cent, and industrial and logistics for 6 per cent, while retail received no private equity investment.

Investors increasingly backed platforms operating across multiple cities. Pan-India and multi-city transactions accounted for 49 per cent of inflows, up from 18 per cent in FY26. Bengaluru led individual cities with a 17 per cent share, followed by Pune at 11 per cent, while the combined share of the national capital region and Mumbai metropolitan region declined to 16 per cent from 40 per cent.

Equity represented 83 per cent of inflows, the highest level since at least FY23, compared with 77 per cent in FY26. Structured debt fell to 16 per cent from 32 per cent in FY23. Anarock said strong office leasing, data centre demand and hotel performance could support continued momentum, while matching H2 FY26 inflows would take FY27 investment to about $4.8 bn. The listing of Bagmane Prime Office REIT also strengthened exit opportunities for private investors.